# SCM 300 – LAB EXERCISE #6STUDENT VERSIONYOU MUST SHOW YOUR WORK TO RECEIVE CREDITMetrics and Quality ExerciseLab Exercise (25 Points)SCM 300RELIABILITY(2 P

SCM 300 – LAB EXERCISE #6STUDENT VERSIONYOU MUST SHOW YOUR WORK TO RECEIVE CREDITMetrics and Quality ExerciseLab Exercise (25 Points)SCM 300RELIABILITY(2 Points per question)A certain company produces 22,000 tables per year in a three-step process.The three steps inthe process employ machines with the reliabilities listed here:Step A – 0.989Step B – 0.977Step C – 0.9051.What is the reliability of the present process?Provide reliability to three digits.Answer: 0.8742.How many defectsdoes this process presently produce annually?Round up to get a wholenumber.Answer: 27723.If the cost per defective unit is $28.50, what is the annual cost of defects to the company atthis time?Answer: 79,0024.The company can choose to buy a back-up machine for Step C for an additional $30,000.Theback up would also have a reliability of 0.905, just like the one that is presently used.If theydecide to get this back-up machine, what will the new reliability of thesystembe?Assume thatonce a machine malfunctions, the process continues to produce product, acceptable anddefective.Use THREE decimal places in you calculations.Answer: 0.9585.With the back up in place, how many defects will the process produce annually given thesame demand rate?Round up to get a whole number.Answer: 9246.How much do they stand to save this year if the cost of the back-up machine is included inyour calculation?Remember to include the cost of the back-up into your calculations.Answer: 22,668SUPPLY CHAIN METRICS – PROCESS VELOCITY(4 Points)A computer technician arrives at work at 8AM and finds a department manager delivering threemalfunctioning laptop computers.The computer technician begins to repair the problems as soonas possible.The technician begins on the first computer and does not start the second computeruntil the first is repaired.The technician works on only one computer at a time.The techniciantakes a lunch break from 12-1PM.The first computer is repaired by 10amThe second computer is repaired by 10:30amThe third computer is repaired by 2PM.7.What is the total process velocity?Answer: 2.1HINTS:All jobs are there at 8am.Each job leaves when it is completed.Take the total throughput for all three jobs and divide it by the total value added for al